Craig Donohue, who will become chief executive of the CME on January 1 2004, said the e-FX contracts are growing fast on Globex, with 46% of forex trading completed through the platform in the thrid quarter. “This new low-fee structure will pave the way for further European initiatives,” he said.
Transaction fees for eurodollar futures and options and e-mini stock index futures and options will also be cut to 44 cents from $1.44 and $1.14 respectively.
Competition between the CME, the CBOT and Eurex derivatives exchanges has been increasing since Eurex announced plans to launch a US exchange earlier this year. The CME and the CBOT both oppose the plan, which has still to receive official approval, before its planned launch on February 1 2004.
The CBOT transaction fees range from between $1.25 and 15 cents for electronically traded financial contracts. Eurex charges between €1.10 ($1.30) and 20 cents per derivatives contract traded, with lower fees for market makers.